Compton Provides Market Commentary

    CALGARY, Oct. 8 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE -
CMZ) along with all other public market participants has experienced
unprecedented market turbulence in recent weeks. In response to numerous
inquiries from shareholders and investment analysts, we wish to provide an
update on the previously announced corporate sale process, outline our
corporate debt position, and briefly comment on third quarter operational

    Corporate Sale Process

    The marketing program relating to Compton's corporate sale process
formally commenced with the opening of a Data Room on September 8, 2008. A
number of substantial potential buyers have signed confidentiality agreements,
received corporate presentations, and are active in the Data Room. Compton and
its advisors continue to schedule presentations and respond to questions from
interested parties.
    Compton remains committed to the sales process and will provide further
comment as we move forward.

    Reduced Corporate Debt

    Our outstanding debt as at June 30 and September 30, 2008 is summarized

                                     June 30, 2008       September 30, 2008
    Senior Notes (US$450 million)    $458.4 million      $468.0 million
    Unrealized exchange gain         (21.9) million            --
                                     --------------      --------------
                                     $436.5 million      $468.0 million
    Syndicated bank credit facility
    (authorized $500 million)        470.0 million       240.0 million
                                     --------------      --------------
    Total                            $906.5 million      $708.0 million
                                     --------------      --------------

    The Senior Notes, bearing a fixed interest rate of 7.625%, were issued in
late 2005 and early 2006 and are due December 1, 2013. They are unsecured and
rank subordinate to the bank credit facility.
    The extendable revolving bank credit facility in the amount of
$500 million is placed with a syndicate of Canadian and international banks.
The facility was renewed on July 2, 2008 under substantially identical terms
and conditions and gave full effect to the property sales discussed in the
next paragraph. The next scheduled annual review by the syndicate is mid-2009.
 The credit facility is borrowing based and is secured by Compton's long life
reserves. The facility is a revolving term facility and our drawings bear
interest at 95 basis points above Prime Loan rates and 195 basis points above
Bankers Acceptance rates.
    During the third quarter of 2008, Compton closed the sale of four minor
non-core asset packages for total proceeds of $212 million net of closing
adjustments. Additionally, during the quarter, we realized a foreign exchange
gain of $31.1 million on the sale of forward foreign exchange contracts
relating to the U.S. dollar denominated Senior Notes. Proceeds from these
transactions have been utilized to reduce funds drawn on the bank credit
facility and as at September 30, 2008, $260 million remains undrawn and
available to the Company.
    Compton is well within all compliance covenants relating to its debt

    Q3 Operational Activities

    Throughout the sale process, Compton has continued normal operations and
had a busy and successful third quarter. With much improved field conditions,
Compton drilled a total of 101 gross wells (80 net) during the period. We have
continued the focus of applying horizontal drilling combined with multi-stage
frac completions to our Deep Basin and Foothills natural gas plays with good
success. The horizontal multi-stage fracture technology has proven applicable
to the development of Compton's extensive land base in the Deep Basin of
Alberta. Utilization of this technology has the potential to accelerate the
recovery of reserves from these tight natural gas reservoirs and compress the
reserve life index of our reserves.


    Certain information regarding Compton contained herein constitutes
forward-looking information and statements and financial outlooks
(collectively, "forward looking statements") under the meaning of applicable
securities laws, including Canadian Securities Administrators' National
Instrument 51-102 Continuous Disclosure Obligations and the United States
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include estimates, plans, expectations, opinions, forecasts, projections,
guidance, or other statements that are not statements of fact, including
statements regarding (i) cash flow and capital and operating expenditures,
(ii) exploration, drilling, completion, and production matters, (iii) results
of operations, (iv) financial position, and (iv) other risks and uncertainties
described from time to time in the reports and filings made by Compton with
securities regulatory authorities. Although Compton believes that the
assumptions underlying, and expectations reflected in, such forward-looking
statements are reasonable, it can give no assurance that such assumptions and
expectations will prove to have been correct. There are many factors that
could cause forward-looking statements not to be correct, including risks and
uncertainties inherent in Compton's business. These risks include, but are not
limited to: crude oil and natural gas price volatility, exchange rate
fluctuations, availability of services and supplies, operating hazards, access
difficulties and mechanical failures, weather related issues, uncertainties in
the estimates of reserves and in projection of future rates of production and
timing of development expenditures, general economic conditions, and the
actions or inactions of third-party operators. The forward-looking statements
contained herein are made as of the date of this news release solely for the
purpose of generally disclosing Compton's updated strategic plans, capital
program and budget targets for 2008. Compton undertakes no obligation to
update publicly or revise any forward looking statements, whether as a result
of new information, future events or otherwise, except as required by law.
Compton cautions readers that the forward-looking statements may not be
appropriate for purposes other than their intended purposes. Compton's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
    Compton Petroleum Corporation is a Calgary-based public company actively
engaged in the exploration, development, and production of natural gas,
natural gas liquids, and crude oil in the Western Canada Sedimentary Basin. 
Compton's shares are listed on the Toronto Stock Exchange under the symbol CMT
and on the New York Stock Exchange under the symbol CMZ.

    %SEDAR: 00003803E          %CIK: 0001043572

For further information:

For further information: E.G. Sapieha, President & CEO or N.G. Knecht,
VP Finance & CFO, Telephone: (403) 237-9400, Fax (403) 237-9410; Website:; Email:

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